UK power company Drax has signed 20-year deal with Power Minerals Ltd to enable the development of a plant to process millions of tonnes of legacy ash into supplementary cementitious materials (SCMs) for cement production.

The new factory will be located adjacent to the Drax Power Station in Selby, North Yorkshire, on land leased from Drax. Following its conversion to using biomass, the plant is now the single largest generator of renewable electricity in the UK. However, Drax has large volumes of legacy pulverised fuel ash (PFA), which it will supply, along with power, to the facility. Drax believes the project could generate incremental adjusted EBITDA of around GBP5m each year after 2027 through to 2046.

Production of the SCM is scheduled to start by the end of 2026, with an expected initial production capacity of 400,000tpa. 

Over the duration of the project, Power Materials Ltd expects that the utilisation of PFA from Drax in lower-carbon cements can reduce emissions of CO2 by at least 6Mta, when compared to conventional cements. 

Lee Dawes, Drax COO, said: "This is a landmark deal not only for Drax, but for the UK construction industry. Cement production is one of the most carbon intensive processes in the world and through this partnership, we will be able to help the construction industry cut its carbon emissions in the years ahead.

"Drax Power Station is integral to the country's energy security and now through this new agreement it can play a further role in reducing carbon emissions in UK construction as well.

"The opportunity to sell large volumes of PFA from Drax Power Station as part of a long-term JV is another way in which we can realise incremental value from the site whilst helping to reduce carbon emissions. It is an exciting time for Drax as we continue to develop options for long-term investment in the site, including BECCS and a data centre."

Nigel Waldron, PML MD, said: "We are proud to have pioneered the use of ashes from Drax for more than 20 years, and now we are delighted to be a part of this major investment, securing a long-term future for our business and our relationship with Drax for decades to come."